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Types of Digital Signature ( All Different Options Explained)

A digital signature serves as an authentication tool that verifies your identity. It serves as a digital substitute for a handwritten or stamped seal. A digital signature aims to prevent fake and impersonation in digital interactions.

Digital signatures serve as a digital substitute for a handwritten signature or seal. The legitimacy and integrity of digital documents and messages are frequently ensured through these signatures in electronic transactions, including online banking, e-commerce, and electronic contracts. 

Types of digital signature

There are three types of digital signatures based on the technology they employ:

Simple – It is the simplest version because no encryption is used to secure it. The most typical illustration is a wet signature scanned by a machine and then put into a document. Another instance of a direct digital signature is the email signature that we frequently include at the bottom of emails and click the terms and conditions box during software installation.

Basic – Basic digital signatures only differ from simple digital signatures in that they can demonstrate changes made to a document after signing it. Because it does not refer to a verified identification, this signature cannot guarantee the protection of your identity.

Advanced and Qualified – It has the same legal weight as a wet signature on paper and is the safest digital signature available. Asymmetric cryptography and public key infrastructure are used in its construction. Advanced and qualified digital-level signatures can also specify the time, location, and equipment for signing documents. Determining any modifications made to the document after it is signed is also simple.

Categories of digital signatures

Class 1 – It relies on an email ID and username for validation. So it cannot be used for official business documents. Environments with a low risk of data compromise utilize class 1 signatures, which offer a basic level of protection.

Class 2 – It checks the signer’s identity against a database that has already been confirmed. The electronic filing (e-filing) of tax papers, such as income tax returns and goods and services tax filings, frequently uses these DSCs in settings with moderate risks and effects of data compromise; class 2 digital signatures are utilized.

Class 3 – It is the highest level of digital signatures, requiring signers to physically appear before a CA to establish their identity. It is used in e-auctions, e-tendering, e-ticketing, court filings, and other settings where there are significant risks to data or consequences from a security violation.

Importance of digital signature

A digital signature is a crucial instrument for guaranteeing the security and reliability of electronic communications and transactions. Its significance is increasing with more and more transactions taking place online. Following are some reasons for its importance:

Authentication – Digital signature confirms the sender’s identity on a message or document. By doing this, you may ensure that the recipient is aware that the letter or document hasn’t been altered in any way.

Integrity – A digital signature offers a technique to confirm that text in a message or document hasn’t been changed while it’s being sent or received. It guarantees that the document or notification reaches the receiver as intended by the sender.

Non-repudiation – Digital signature ensures the sender cannot deny sending the document or message. Having a reliable record of communications is crucial in legal and professional transactions.

Efficiency – As digital signatures do not require physical involvement, they are very efficient in executing transactions and communicating more quickly and effectively.

How to create a digital signature

You can create a digital signature by employing signing software, like an email program, to generate a one-way hash of the digital data to be signed.

Using an algorithm, a hash creates a fixed-length string of numbers and letters. With the help of the creator’s private key, the hash is encrypted. An encrypted hash and additional relevant data, such as the hashing algorithm, make up digital signatures.

Encrypting the hash rather than the entire message or document is preferred because a hash function can convert any input into a fixed-length result, which is typically considerably shorter. It saves time because hashing is far faster than signing.

The value of a hash is specific to the data it hashes. A single character in a data string can modify the value by any amount. This characteristic enables others to validate the data’s integrity by decoding the hash using the signer’s public key.

If the decrypted hash agrees with a different calculated hash of the identical data, it confirms that it hasn’t changed since it was signed. If the two hashes differ, either the data was altered and is now compromised, or the signature was created using a private key that differs from the public key provided by the signer, resulting in difficulty with authentication.


Digital Signature Certificates are vital to digital filing and have numerous advantages for businesses and individuals submitting documents. Using a cryptographic technique, a specific number or digital fingerprint is created when you create a digital signature on a document. This document is issued by a legitimate authority to ensure the signer’s validity and signature.

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